Published on 13 Jul 99
by SOUTH AUSTRALIAN DIVISION, THE TAX INSTITUTE
From 4.00pm 13 August 1998 a closely held trust that makes a distribution to another trust, must in many cases identify the beneficiaries who will ultimately be entitled to any taxable or tax-preferred distributions. Where the ultimate beneficiaries are not correctly identified within the specified period a penalty is imposed. The ATO considers the new rules are 'conceptually manageable'. The author is not so sure that the new rules are commercially or practically manageable.
Joe is a KPMG Tax Partner who has extensive experience advising on debt forgiveness and similar transactions. Joe is a member of the NSW State Council and Education Committee for the Taxation Institute.
Current at 10 September 2004